Natural gas futures surge on heat wave; oil up

Scorching temperatures send natural gas futures to three-year high

WASHINGTON – Natural gas futures surged 14 percent to a three-month high on Monday, rallying on strong demand from power producers amid scorching temperatures across the Midwest and Northeast.

Oil prices also rose as fighting between Israel and Hezbollah raged on, keeping traders tense about a possible Mideast supply disruption.

The U.S. heat wave drove up demand for natural-gas-fired electricity as consumers cranked up their air conditioners. That sent September Nymex natural gas futures $1 higher, to $8.185 per 1,000 cubic feet. The last time front-month natural gas futures settled above $8 was April 20.

The upper Midwest and Plains were steamy, with numerous heat warnings in place from Michigan to Oklahoma. Forecasts for above-normal highs were posted along the East Coast, where triple-digit readings were in the offing by midweek from the Carolinas through southern New England.

AP